Understanding Bitcoin Dominance (BTCD)
Bitcoin dominance (BTCD) refers to the ratio of Bitcoin’s market capitalization to the combined market capitalization of all other cryptocurrencies.
Bitcoin’s Dominance and Influence
Bitcoin is the most valuable cryptocurrency in the world by market capitalization and has been the dominant player in the crypto market for many years.
However, its dominance has gradually decreased as new cryptocurrencies, such as Ethereum, have emerged.
Despite the emergence of various altcoins, Bitcoin remains the most popular and widely recognized cryptocurrency.
Its price movements often influence the market behavior of other cryptocurrencies, resulting in a close correlation.
Bitcoin’s Widespread Acceptance and Anonymity
This interdependence has fueled the widespread acceptance of Bitcoin as a payment method.
Transactions are processed using hardware terminals or wallet addresses with QR codes.
Online businesses can easily integrate Bitcoin alongside traditional payment methods like credit cards and PayPal.
While Bitcoin transactions are recorded on a public network, the identities of buyers and sellers remain anonymous.
Only their wallet addresses are accessible to the public. This anonymity enables users to make purchases and sales without being identified.
However, it has also led to criticism from regulatory authorities due to its potential use for illegal activities.